Spending on hardware leads the way as local market shows signs of stabilisation

The IT market in Iraq is set to grow at a rate of around 13% this year, reinforcing suggestions from regional channel companies that the country is becoming a more viable place to do business.

New data from market intelligence firm Springboard Research puts the anticipated value of Iraqi IT sales at US$63.2m in 2010, up from US$55.7m last year.

Unsurprisingly for a market still considered to be in its nascent stages, hardware sales are likely to account for the overwhelming portion of IT spend. Springboard predicts hardware will represent 62% of IT sales in Iraq this year, followed by services (22%) and software (16%).

The company attributes the growth to the "relative stability" being felt in the market, as well as a rebound in oil prices since the onset of the financial crisis.

"ICT use in Iraq has increased moderately in some areas and more substantially in others. In the latter case, this is due to increased private investment and initiatives undertaken by international organisations to introduce the Iraqi population to new technologies," stated James Erickson, research manager for the Middle East and Africa at Springboard.

Government efforts to improve internet infrastructure are leading to increased web adoption, according to Springboard, which notes that internet cafes are regarded as the most popular means to use computers and access the web.

It predicts that once broadband is widely available and affordable, the growth of the PC and internet-based businesses in Iraq will outpace the growth rate of the wireless phone industry.

Furthermore, it says that various infrastructure projects are underway to further develop fibre optic and wireless network cables throughout the country to increase access to advanced communications.